Car Insurance Quotes and Rates in California, How Car Insurance Premiums are Calculated
Car Insurance Quotes and Rates in California, vary based on many parameters. So how Car Insurance Premiums are Calculated? And how to get the cheapest and low premium car insurance? We will explain the effect of the parameters on the Quotes with the following Minimum and Cheapest policy example:
|Coverage Type||Basic – Liability Only|
|Insurance For||Single Driver|
|Years Licensed||14 to 25|
|Mileage||5,000 – 7,500|
|Driving Record||No Violations|
* The annual premiums shown are before any applicable discounts are applied. So this is not an insurance premium quote. Contact a company representative for an actual “Auto Premium Quote.”
How Car Insurance Quotes and Premiums are Calculated in California
Each insurance company has its own pricing policy and may charge low or high premiums based on that policy. In general there is an inverse relationship between premium prices and the company’s reliability, customer service and support. For the cheapest car insurance policy available above, different insurance companies offer different Quotes. For example companies like Western Gen Ins Co, offer very cheap Quote( $245). But in best car insurance companies in California List, Geico offers the cheapest Quote($413 annually). Moreover Farmers car insurance offers the highest Quote ($894 annually) .
State and County
Each state and county has different Risks, laws and prices. Therefore, the same insurance company may offer different Quotes for the same policy in different states or counties. For example, on the cheapest car insurance policy founded above, We can choose Los Angeles – Central. As a result Geico’s Quote is still $413 annually. But Farmers insurance company’s Quote rises to $1378 annually.
Coverages and limits of Auto Insurance Policy
The more coverage and limits you want, the higher the premiums you will pay. For example, on the cheapest car insurance policy listed above, you can choose Standard coverage instead of Basic – Liability Only. So the annual premium will range from $948-2872. Among our top car insurance companies list, you’ll get the cheapest quote from Mercury ( $1124) and the most expensive quote from Farmers ( $1907). However Geico’s quote will be $1,723.
Number of drivers in Car Insurance Policy
How many people will drive the same car? The more people, the higher the premiums. You Can Choose Married Couple Insurance Instead of Single Driver. As a result on the above list, the annual premium will range from $377-$1834. Among our top car insurance companies in California list, you’ll get the cheapest quote from Progressive ( $730) and the most expensive quote from Farmers ( $1608). On the other hand Geico’s quote will be $752, Mercury $796, Travelers $822, Esurance $1062 and Nationwide $1166.
Years Licensed Car Insurance quotes in California
In California, most insurance companies determine who a young driver is based on their driver’s license year, while others may consider both age and driver’s license year. This can result in temporarily higher insurance premiums. Because younger drivers have the least driving experience. If your Licensed year is 1 to 2 year on the cheapest car insurance policy listed above. As a result the annual premium will range from $665-$2590. Among our top car insurance companies list, you’ll get the cheapest quote from Geico ( $854). But the most expensive quote from Farmers ( $1814). Also State Farm’s quote will be $905, Travelers $975, Progressive $1254, Esurance $1530 and Nationwide $1559.
Mileage and Auto Insurance quotes Relations
Car insurance premiums are based on risk. The further and more often you drive, the more likely you are to be involved in and accident and need to make a claim. So, the higher your annual mileage, the higher your premium. In the policy listed above, if your annual millage is 12,500 – 16,000, the annual premium will range from $331-$1225. Among our list, you’ll get the cheapest quote from Mercury ( $516) and the most expensive quote from Farmers ( $1159). Also State Farm’s quote will be $551, Geico $555, Wawanesa $584, Travelers $588, Progressive $664, Esurance $740 and Nationwide $805.
Driving Record and Car Insurance quotes in California
Insurers are generally prohibited from refusing to issue a policy or increasing your policy premium based on traffic accidents, traffic violations or claims that are more than three years old. Insurers may consider traffic accidents, traffic violations and claims that are older than three years for the purpose of determining eligibility for, or the amount of, a premium discount program.
If your driving record or claims history is less than perfect, you may be considered a higher risk. So you may not be eligible for a premium discount. If you are at a highest risk level, probably none of the insurance companies will accept you. In this case, you need to apply to The California Automobile Assigned Risk Plan (CAARP). If your driving record have 1 Ticket and 1 Accident, the annual premium will range from $400-$1740. Among our list, you’ll get the cheapest quote from Geico( $793) and the most expensive quote from Progressive ( $1646). But Travelers ‘s quote will be $980, Esurance $1154 and Farmers $1403.
Type and Model of car
Generally, the more expensive your vehicle, the more you will pay for comprehensive and collision coverage. Also, sports cars and high-performance vehicles cost more for insurance companies. Because they are involved in more accidents, cost more to repair, and are stolen more often, they cost more to insure. So will increase your premium and the given quote price.
How to get discount car insurance quote in California
As an insurance shopper, you should check with your insurance company or agent or broker about possible discounts that may be applicable to you. Such as those for senior citizens, car pools, low annual mileage. And the “good student discount” offered to youthful operators meeting certain academic requirements. You can also save money with a “multi-car discount” by insuring all your cars with the same insurance company. That is to say, rates are generally highest for youthful drivers. So young drivers should inquire about a “driver training” discount offered by many insurers for those who have taken driver’s education classes.
Your income may be low and it may be difficult for you to pay premiums. In such cases, California has a program to help you. You can apply for California’s Low Cost Car (CLCA) Insurance program. Therefore this program helps eligible drivers obtain auto insurance that meets their state’s liability laws.
- Good Drivers Discount: California Good Drivers with a clean driving record for 5 years qualify may have an additional discount.
- New Vehicle Discount:
- Coll Multi-Line Discounts: For auto customers having other insurance policies types with same Insurance Company.
- Loyalty/Persistency Discount: As customers maintain coverage with the company, they will receive persistency discounts of 5.1% – 10.1%.
- Anti-Theft Devices 5% -10%.
- Drivers Training 5%.
- Good Student 1%.
- Group Prog Credit/Prof Degree Up to 39%.
- Low Annual Mileage Driven Up to 39.5%.
- Mature Drivers Course 5%.
- Multi – Car 10% – 19%.
- Multi-Policy Credit Up to 20%.
- Passive Safety Features 5% (airbag).
- Persistency Credit (Retention) 5.1% to 10.1%.